Major Moves money coming to northern Indiana

County, cities plan to invest $40 million.

County, cities plan to invest $40 million.

September 13, 2006|JAMIE LOO Tribune Staff Writer

SOUTH BEND -- St. Joseph County, South Bend and Mishawaka officials said the $40 million in Major Moves dollars coming to the county will be invested. The state is distributing the first installment of Major Moves dollars to the Toll Road counties Friday. Two smaller distributions from the Toll Road lease, which are divided among all counties statewide, are expected in October with the last installment in October 2007. Those dollars are based on the state's formula for highway money. South Bend will receive $12.8 million, Mishawaka $5.5 million and the county $20.6 million, with the rest distributed to the towns. "In general, there was consensus among all of us that we don't want to fritter those dollars away," Mayor Stephen Luecke said. "They should be invested for the long term in a variety of ways through a specific road project or a trust fund." The three entities plan on investing the dollars to keep the principal and spend the interest generated over the next 75 years. But the county and both cities have different plans for that interest. Luecke said that after the money is placed into a trust fund, South Bend could have an estimated $625,000 a year if the interest rate is 5 percent. That yearly income could be used for local paving projects with a match from federal or state grants, he said. The money could also be bonded to pay for large projects, such as lane widening or road extension. Gary Gilot, public works director for South Bend, said the money could also go toward other types of transportation improvements, such as bike and pedestrian trails. Mishawaka Mayor Jeff Rea said the city could have an estimated $275,000 a year, which won't stretch as far. Rea said the money could be pooled for short-term bonds to take care of bigger road projects in Mishawaka. The smaller distributions will be used to supplement the streets program, he said. County Commissioner Mark Dobson said the county would receive about $1 million yearly, based on interest. Because the county received less in motor vehicle highway money last year, Dobson said, some of the money may need to be spent next year to make up for the shortfall. County Commissioner Steve Ross said investing is "the most fiscally responsible way" to handle the money.